Do FDI and Patents Drive Sophistication of Exports? A Panel Data Approach

Seren Ozsoy, Burcu Fazlıoğlu () and Sinan Esen

Prague Economic Papers, 2021, vol. 2021, issue 2, 216-244

Abstract: This paper investigates whether inflows of FDI and innovative activities act as a channel of knowledge spillovers in improving quality of countries' output. In measuring export quality, sophistication of a country's export basket is utilized. Utilizing panel data of countries for the period 2002-2015 and applying GMM methodology, the results indicate that the level of financial development, the quality of human capital and globalization of a country have a determinant role on the relation between knowledge spillover channels and the quality of exports. Patent applications generally positively affect sophistication of exports. FDI serves as a channel for knowledge spillovers to benefit the sophistication level of exports only for developed, more educated, financially developed and globalized countries.

Keywords: Knowledge spillovers; sophistication of export; patent applications; FDI (search for similar items in EconPapers)
JEL-codes: F14 F21 F41 O10 O30 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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DOI: 10.18267/j.pep.755

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